A company constructs a building for its own use. Construction began on January 1 and ended on December 30. The expenditures for construction were as follows: January 1, $700,000; March 31, $800,000; June 30, $600,000; October 30, $1,200,000. The company arranged a 8% loan on January 1 for $1,100,000. Assume the $1,100,000 loan is not specifically tied to the construction of the building. The companys other borrowings, outstanding for the whole year, consisted of a $7 million loan and a $9 million note with interest rates of 10% and 6%, respectively.

Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year.

A company constructs a building for its own use. Construction began on January 1 and ended on December 30 . The expenditures for construction were as follows: January 1, $700,000; March 31 , $800,000; June 30,$600,000; October 30,$1,200,000. The company arranged a 8% loan on January 1 for $1,100,000. Assume the $1,100,000 loan is not specifically tied to the construction of the building. The company's other borrowings, outstanding for the whole year, consisted of a \$7 million loan and a \$9 million note with interest rates of 10% and 6%, respectively. Assuming the company uses the weighted-average method, calculate the amount of interest capitalized for the year. Note: Enter your answers in whole dollars and not in millions. Do not round intermediate calculations. Round your percentage answers to 2 decimal places (i.e. 0.1234 should be entered as 12.34% )